ComEd 2015 Annual Report Download - page 130

Table of Contents
inclusion of CENG’s results on a fully consolidated basis for the full year in 2015, increased nuclear volumes and the inclusion of Integrys’ results
in 2015, partially offset by lower realized energy prices and decreased capacity revenues.
. The $487 million increase in revenue net of purchased power
and fuel expense in New York was primarily due to the consolidation of CENG.

 The $24 million decrease in revenue net of purchased power
and fuel expense in ERCOT was primarily due to lower realized energy prices and a decrease in generation volumes due to the sale of a
generating asset, partially offset by the absence of higher procurement costs for replacement power in 2014 and decreased fuel costs.
 The $119 million decrease in revenue net of purchased power
and fuel expense in ERCOT was primarily due to higher procurement costs for replacement power in the second quarter of 2014 and the
termination of an energy supply contract with a retail power supply company that was previously a consolidated variable interest entity. As a result
of the termination, Generation no longer has a variable interest in the retail supply company and ceased consolidation of the entity during the third
quarter of 2013. The decreases were partially offset by higher generation volume in the first quarter of 2014.

 The decrease in revenue net of purchased power and fuel
expense in Other Power Regions of $77 million was primarily due to the amortization of contracts recorded at fair value associated with prior
acquisitions, lower realized energy prices, the absence of the 2014 fuel optimization opportunities, partially offset by increased generation from
power purchase agreements, and decreased fuel costs.
 The $126 million increase in revenue net of purchased power
and fuel expense in Other Power Regions was primarily due to higher generation volumes and higher realized energy prices.

 The $41 million decrease in revenue net of purchased power
and fuel expense in Proprietary trading was primarily due to the absence of gains on congestion trading products.
 The $50 million increase in revenue net of purchased power
and fuel expense in Proprietary trading was primarily due to gains on congestion trading products.

Generation is exposed to market risks associated with changes in commodity prices and enters into economic hedges to mitigate exposure
to these fluctuations. See Note 12—Fair Value of Financial
123
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.